Reliance Industries Ltd (RIL) expects the green power segment to emerge as a growth engine for the company that could potentially outperform other businesses in the next 5-7 years, Chairman and Managing Director Mukesh Ambani told shareholders in a message in the company’s annual report for 2021-22.
Reliance had last year shared its ambitious plan to invest $10 billion over three years. This investment would be on setting up four giga-factories to manufacture and fully integrate all critical components for the business and will also include investment on the value chain, partnerships, and future technologies.
“Over the next 12 months our investments across the green energy value chain will gradually start going live, scaling up over the next couple of years. This new growth engine holds great promise to outshine all our existing growth engines in just 5-7 years,” Ambani said.
He said that RIL will continue to expand its existing businesses in terms of technology, innovation, scale and execution.
Also read: Reliance to hold its 45th AGM on August 29
“India is set to become one of the world’s top three economies in the next couple of decades, and all of Reliance’s business verticals will play a leading role in achieving that. India and Reliance will aim to play a leading role in the world’s transition to clean energy,” Ambani said.
The clean energy business of the conglomerate will focus on building technologies, scaling capacities and creating a new energy ecosystem for India and RIL to achieve the ambition of net carbon zero. RIL aims to be net carbon zero by 2035.
The company said it has set up a new energy council chaired by Dr Raghunath Mashelkar, former Director General of the Council of Scientific and Industrial Research, to guide the clean energy initiatives. The nine-member council includes eight global technocrats, many of whom are advisers to governments worldwide.
“Reliance's approach is to create a new energy ecosystem, transition to clean energy and convert clean energy to green chemicals,” the company said in the annual report.
RIL is developing the Dhirubhai Ambani Green Energy Giga Complex on 5,000 acres in Jamnagar, comprising four giga factories. These include an integrated solar photovoltaic module factory, an advanced energy storage battery factory for intermittent energy, an electrolyser factory for the production of green hydrogen and a fuel cell factory for converting hydrogen into motive and stationary power.
The company is also setting up infrastructure in Jamnagar to manufacture ancillary material and equipment needed to support the giga factories and enabling independent manufacturers to join and grow as part of this ecosystem.
“As we transition into a new energy era, targets for periodic reductions in emissions are being established, which will be monitored regularly through governance mechanisms that oversee RIL's progress toward Net Carbon Zero goals,” the company said.
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